It takes a certain level of expertise to understand all of the complexities of small, medium and large companies and their professional exposures from all types of businesses and individuals whom they interact with. Sadly, many firms don’t fully understand their exposure until it’s too late, and they may even believe their business insurance will cover them for professional liability claims. As an insurance broker, it’s in your best interest to help them make informed decisions about their coverage needs.
For example, if an architect modifies plans even slightly, they could now be at an increased risk for a construction professional liability claim. Therefore they’re going to need miscellaneous professional liability (MPL) coverage that provides them with reliable protection against claims related to their business. This includes doctors, dentists, lawyers, engineers, and a vast array of clients that provide professional services.
Not having MPL coverage can be costly
MPL, which is also called errors and omissions (E&O) liability insurance was the result of wanting to help insureds battle claims that arise or result from errors or omissions in the performance of professional services. Companies performing professional services for others are likely to make a mistake at some point. Mistakes might include breach of contract, failure to perform services as promised, fraud and malpractice.
For example, if a customer alleges that the accounting information they were provided contained incomplete representations, an estate sales firm makes a sale that results in lower than expected revenue, or a consultant is late in delivering a marketing plan that was contracted for a specific delivery (within 90 days); these are all instances where a lawsuit for breach of contract, or failure to meet a commitment could evolve.
As their broker, you need to help them understand that this specialty product was created to provide assistance to a broad range of professionals, helping them to meet the challenges of today’s litigious environment. You need to partner with an expert that is ready to extend their services to help you analyze and secure the best possible coverage to fit your client’s firm and protect their company’s valuable assets. Providing your clients with miscellaneous professional liability insurance when they truly need it is the most valuable service that you can provide.